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GuocoLand drops further into the red in 2Q

KUALA LUMPUR (Jan 10): GuocoLand (Malaysia) Bhd has dropped even deeper into the red for the second financial quarter ended Dec 31, 2019 (2QFY20), due to lower sales of completed units, as well as higher marketing costs.

It posted a widened loss of RM14.85 million in 2QFY20, compared with RM12.65 million in the previous corresponding quarter. Revenue was also 18.3% lower at RM90.19 million, from RM110.42 million previously.

In a filing with Bursa Malaysia yesterday, GuocoLand said lower revenue for the quarter was due to lower sales of completed units. At the same time, selling and marketing expenses of RM4.9 million for the quarter was higher by RM1.3 million, compared with RM3.6 million previously.

"This was due to the higher marketing cost incurred for Emerald Hills in the current quarter, compared to the corresponding quarter of preceding year," it said.

For the first half of the financial year 2020 (1HFY20), GuocoLand posted a loss of RM24.85 million compared with RM13.87 million in the previous year, while revenue was down 26.4% to RM138.51 million from RM188.18 million.

For the rest of the financial year, GuocoLand said the domestic property market is expected to remain lacklustre, due to continued weak market- and consumer sentiments.

"The overall momentum and prospects of the property market in the short term, is expected to remain challenging. Moving forward, the Group will launch its projects according to prevailing market sentiments," it said.

Shares of GuocoLand closed unchanged yesterday at 71 sen, for a market capitalisation of RM497.33 million.

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